GIC invests $113m in India's Can Fin

According to a filing, GIC will make its investment through its affiliate Caladium Investment, paying INR2,105 per share. Can Fin stock was trading at about INR1,966 as of early afternoon trading on March 13. The seller, India’s state-owned Canara Bank, agreed to the transaction as part of an effort to monetize non-core assets.

“The investment stems from GIC's belief in the strong growth potential of India's housing financing sector over the long term,” the sovereign wealth fund said in a statement. “The sector has strong tailwinds driven by rising disposable incomes, growth in residential real estate and urbanization.”

Can Fin was set up by Canara and incorporated in 1987 with the aim of promoting home ownership in India. It operates via 120 branches and 50 satellite offices, primarily in the country’s southern regions. Net Profit for the 2016 financial year totaled INR1.6 billion, up 82% year-on-year, while net sales improved 33% to INR10.8 billion. 

GIC is an active investor in India’s financial services sector, having recently committed INR3.4 billion to Capital First, a non-banking financial company also backed by Warburg Pincus. This followed closely on participation in a $449 million IPO for PNB Housing Finance, a mortgage lending subsidiary of state-run Punjab National Bank.

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• Topics
• South Asia
• Financials
• Real estate
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• India
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• GIC Private
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